E&O Insurance Definition

Short Definition
Errors & Omissions Insurance is commonly referred to as E & O Insurance. This is an insurance policy which can be purchased by professionals as protection against possible liability claims made by clients.

Expanded Definition
Commonly referred to as E & O Insurance, Errors & Omission Insurance policies can offer protection for professionals who provide advice, information or service to businesses or individuals. Normally accountants, bookkeepers, lawyers, consultants, and financial planners will secure this insurance coverage. While traditional liability insurance will cover personal injury or property damage, E & O Insurance will go further and protect the insured against claims resulting from inaccurate advice, negligence, or mistakes.

Related Article
What is E & O Insurance (and Do I Need It?)